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Good day Koalas,
we do not live in a perfect world and we must always appreciate what we have. Strikes started in Greece and it is something no one wants to see happening.
The EUR/USD went on a bull run moments after yesterday’s article after reports surfaced of Germany’s possibility of backing up Greece. The gain was erased as of now. The currency pair tested 1.3680, earning me the right to boast once again “I LOVE IT WHEN MY CHARTS WORK.”
The S&P 500 displayed similar trails, eroding the previous day’s gain.
Oil is currently valued at $71.
Gold drops to $1065+, dragged along by the US Dollar.
While folks were relief when the possibility of a German backup surfaced, the problem would not be solved overnight after all and once the euphoria wears off, reality sets in. Schools, hospitals and flights were suspended. Basic social services breakdown.
Adding oil to the flames of trouble only serves to make the fire stronger. With the strikes, strong plans to reduce the deficits by the Greek government may be hampered, potentially causing problems to magnify.
Investors do not like a troubled country and hence risk aversion is strong, dragging the global economy with it like an anchor to a ship. With more strikes planned in the near future, the situation is hanging by a thread.
Over at the US, while the trade balance gave us figures to ponder about in terms of it’s effect on the economy, i will like to draw your attention to an encouraging sign. Both imports and exports grew, suggesting increased demand both in the US and global markets. This kind of growth is usually typical of a recovering economy.
Having said so, Forex is belongs to the world stage and hence we must look at the big picture always. I know of folks who had their accounts fried yesterday due to the sudden surge up. Some folks who missed the “party” began to bet excessively on further bullish momentum got stung when the price drops. If you have been following the koala, you would have known that the problem goes beyond a mere fix. Please. For the love of YOUR OWN MONEY, plan your trades well and always practice proper money management.
The EU Economic submit takes place tomorrow and investors will be using a magnifying glass on comments and releases. Be careful of unexpected spikes. The US Unemployment Claims is due tomorrow too.
Last but not least, the technical pattern i spoke about yesterday seems to be playing out. While nothing is guaranteed, caution should be exercised.
A bullish return may see us testing 1.3740/800.
Further bearish attack may test the strong line of 1.3600 followed by 1.3550.
I may be undergoing a separation with sleep soon. She claims that i have been neglecting her and 6 hours a day is no way to have a healthy relationship. Something must be done!
Read more Forex Articles and Views by The Koala at www.thegeekknows.com